Investors back buying the Canadian dollar

Canada's currency gained as stocks rose on speculation President Barack Obama's plan to stem home foreclosures will bolster the U.S. economy, boosting demand for riskier assets.

"The loonie got clobbered yesterday [Tuesday] on fears the economy might not rebound," said David Watt, a senior currency strategist at RBC Capital Markets in Toronto. "Today people are saying the worst might be past and it's time to dip our toes back in. That's causing people to buy risk-sensitive and cyclically- sensitive assets like the loonie."

The Canadian dollar rose 0.8% to $1.2557 per U.S. dollar at 9:06 a.m. in Toronto, from $1.2654 Tuesday. It touched $1.2674 on Tuesday, the lowest in almost a month, as worries that eastern European banking losses would drive the global economy deeper into recession spurred investors to relatively safe assets like the U.S. dollar and Japanese yen. One Canadian dollar buys 79.553 U.S. cents.

The U.S. will use US$75-billion to bring down interest rates and encourage mortgage loan modifications, the Treasury Department said in a statement. The department also said it would double the amount of stock purchases of Fannie Mae and Freddie Mac to as much as US$200-billion of each company. President Obama will announce details of the program at 10:15 a.m. in Phoenix, deputy White House spokesman Jen Psaki said.

Canada's dollar appreciated against all but four of the 16 most-actively traded currencies. It rose 1.5% against the South Korean won and 1.2% against the yen. The South African rand, New Zealand dollar and Australian dollar gained against the dollar as demand for commodities such as gold increased.

The loonie, as Canada's dollar is known, reached a four-year low of $1.3017 on Oct. 28, and has touched the $1.30 level twice since before rebounding.

Canada's currency will trade at $1.26 against the U.S. dollar until the end of June before rebounding to $1.20 by year- end, according to the median forecast in a Bloomberg News survey of 43 economists.

The yield on the two-year government bond dropped two basis points, or 0.02 percentage point, to 1.198%. The price of the 2.75% security due in December 2010 climbed four cents to $102.76.

Canada's currency gained as stocks rose on speculation President Barack Obama's plan to stem home foreclosures will bolster the U.S. economy, boosting demand for riskier assets.

"The loonie got clobbered yesterday [Tuesday] on fears the economy might not rebound," said David Watt, a senior currency strategist at RBC Capital Markets in Toronto. "Today people are saying the worst might be past and it's time to dip our toes back in. That's causing people to buy risk-sensitive and cyclically- sensitive assets like the loonie."

The Canadian dollar rose 0.8% to $1.2557 per U.S. dollar at 9:06 a.m. in Toronto, from $1.2654 Tuesday. It touched $1.2674 on Tuesday, the lowest in almost a month, as worries that eastern European banking losses would drive the global economy deeper into recession spurred investors to relatively safe assets like the U.S. dollar and Japanese yen. One Canadian dollar buys 79.553 U.S. cents.

The U.S. will use US$75-billion to bring down interest rates and encourage mortgage loan modifications, the Treasury Department said in a statement. The department also said it would double the amount of stock purchases of Fannie Mae and Freddie Mac to as much as US$200-billion of each company. President Obama will announce details of the program at 10:15 a.m. in Phoenix, deputy White House spokesman Jen Psaki said.

Canada's dollar appreciated against all but four of the 16 most-actively traded currencies. It rose 1.5% against the South Korean won and 1.2% against the yen. The South African rand, New Zealand dollar and Australian dollar gained against the dollar as demand for commodities such as gold increased.

The loonie, as Canada's dollar is known, reached a four-year low of $1.3017 on Oct. 28, and has touched the $1.30 level twice since before rebounding.

Canada's currency will trade at $1.26 against the U.S. dollar until the end of June before rebounding to $1.20 by year- end, according to the median forecast in a Bloomberg News survey of 43 economists.

The yield on the two-year government bond dropped two basis points, or 0.02 percentage point, to 1.198%. The price of the 2.75% security due in December 2010 climbed four cents to $102.76.

Shaun is Coal Harbour's #1 Top Producing Realtor

Based on 2008 REBGV MLS listings and sales in Coal Harbour.

What should you do if you are thinking of buying or selling?

If you are considering selling your condo, call Shaun. If you are thinking of buying real estate, call Mike Cook. Everybody has a unique and different situation and our primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision. Now is the time for honest, straight talk, and that's what we promise to deliver.

We welcome your feedback

To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.

Shaun's specialty websites

For this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites:

Contacts

Quick Links

About Me

Year after year Shaun is recognized as one of Vancouver's leading luxury real estate agents. As a 10 year resident of Coal Harbour Shaun began his real estate career specializing in the sale of luxury condos in the area. In 2013 he opened his current office on the Coal Harbour seawall and continues to serve as a neighbourhood ambassador to buyers and sellers from around the world.

Thanks for signing up!

To receive news & updates by email, complete this form

Email Address

First Name

By submitting this form, you are granting: Shaun Kimmins, , , , , , http://www.kimmins.ca permission to email you. You may unsubscribe via the link found at the bottom of every email. (See our Email Privacy Policy for details.) Emails are serviced by Constant Contact.